Why are more CEOs getting fired?

John Stumpf lost his job as CEO of Wells Fargo recently, following a corporate scandal where the bank’s employees used customer data to open more than two million fake bank accounts.

The fraud landed Stumpf in hot water when he appeared in front of Congress, and subsequently he failed to maintain his job.

However, perhaps forty years ago, Stumpf would have been allowed to keep his job.

As reported in The New Yorker, a recent study of CEO tenure found that the percentage of forced turnover tripled between 1970 and 2006, and another study concluded that boards of directors now “aggressively fire C.E.O.s for poor industry-adjusted performance.”